26-88 Which of the Following Is NOT True of an R

question 103

Multiple Choice

26-88 Which of the following is NOT true of an R class CMO issue?

• A)It is treated as "garbage class."
• B)It is a high-risk investment class.
• C)It gives the investor the rights to the over-collateralization and reinvestment income on the cash flows in the CMO trust.
• D)Returns increase when interest rates increase.
• E)It has a positive duration.

---

Definitions:

Salaries Expense

The total amount of salary payments made to employees, recognized as an expense in the accounting period in which the employees' services are rendered.

Office Salaries

Office Salaries refer to the compensation provided to employees who perform administrative duties within an office.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Explanations

Detailed accounts or statements clarifying or justifying something.